The Governor of Louisiana has signed a bill that will allow financial institutions to offer crypto custody services.
The bill allows any financial institution or trust company to provide clients with crypto custody services if adequate risk management and compliance measures are in place.
Institutions can also provide custody services through third-party service providers, making the move much easier for banks. The general sentiment on the bill suggests lawmakers want crypto services to flourish, but only if financial institutions are prepared to implement security measures.
Louisiana bill sponsored by state representative
The bill was signed by Louisiana Governor John Bel Edwards, sponsored by Louisiana State Representative Mark Wright, and supported by the Pelican Center for Technology and Innovation. Many have applauded the news, saying it was forward-thinking and would have a positive impact.
This is a small step for the crypto market, but a step in the right direction nonetheless. It remains to be seen which banks and how many of them will make use of the bill, but it should be an exciting time for residents of the state.
Lawmakers Accelerate Efforts on Cryptocurrencies
US lawmakers have been getting excited about cryptocurrencies, though none have gone so far as to allow banks to allow cryptocurrency custody services. However, they want an assessment of cryptocurrency investments in retirement accounts. Senators plan to introduce a wide-ranging crypto regulation bill, and this rumored bill was leaked a few weeks ago.
Most of it was welcomed by the crypto community, many of whom applaud the regulation because it will add some legitimacy to the market. This, in turn, will attract more investors.
Individual companies have also been doing more with crypto, such as Fidelity adding bitcoin to 401(k) retirement plans. Grayscale’s CEO has said that pension funds are actively exploring cryptocurrencies, pointing to growing interest.
With more regulations coming, and at least some of them positive, 2022 could be a watershed moment for the cryptocurrency industry. The market may be down, but there are hopeful signs for investors and projects that are actually trying to create novel financial services.
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